Konecranes to divest MHE-Demag Industrial Products business to Jebsen & Jessen Group
- Divestment of the Industrial Products unit, which makes equipment like dock levellers and car park systems, allows Konecranes to focus on its core businesses in the region and globally
Konecranes today announced the planned divestment of MHE-Demag’s Industrial Products (IPD) Business to Jebsen & Jessen, allowing it to sharpen its focus on lifting equipment and services in Southeast Asia as well as globally. The deal is expected to close in April.
The IPD business to be acquired by Jebsen & Jessen Group is part of MHE-Demag, a member of the Konecranes Group which was previously a joint-venture between Jebsen & Jessen and Demag. Konecranes acquired Jebsen & Jessen’s 50% stake in MHE-Demag in January 2020.
“The divestment of our IPD business back to Jebsen & Jessen will allow Konecranes to fully focus on growth in our core businesses in the region and leverage the earlier acquisition of full ownership in MHE-Demag. During our strategic review, Jebsen & Jessen stood out as the right fit with a strong vision and strategy for the IPD business, and I am confident that the industrial product business will continue to flourish in its new home,” said Marko Tulokas, SVP, Industrial Service & Equipment, Region APAC, Konecranes.
The newly acquired business by Jebsen & Jessen Group will be known as ‘MHE’ and form the material handling equipment division of Jebsen & Jessen Technology, covering manufacturing, engineering, renting, trading, supplying and servicing of MHE’s complete range of industrial and material handling products such as dock levellers and door systems; mechanical car park systems; building maintenance units; boom lifts and Aerial Work Platforms (AWP); warehouse trucks and lift systems. MHE’s focus markets are Australia, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Upon the finalization of the acquisition, the parties anticipate that approximately 300 highly skilled employees will join Jebsen & Jessen Group, along with related assets. The acquired business will maintain its current commercial presence, and all operations and business will proceed as usual.
“We are excited to welcome the 300-people-strong MHE-Demag Industrial Products (IPD) team to the Jebsen & Jessen Group. The business is already the clear market leader in some segments, and our ambition is to attain market leadership across the portfolio. We are committed to investing in people and the business to achieve our growth ambitions,” said Per Magnusson, Group CEO, Jebsen & Jessen Group. “The acquisition aligns well with our Advance & Build strategy and builds upon our distinctive heritage as a trusted provider of quality industrial products and value-added solutions,” Per Magnusson continues.
Since 1972, IPD has provided systems for iconic buildings in the APAC region such as the Petronas Twin Tower, KL Tower in Malaysia, Marina Bay Sands in Singapore, BNI 46 in Indonesia, Bitexco Financial Tower in Vietnam and Okada Manila in the Philippines. It also provided the mechanism for the retractable roof of the Singapore Sports Hub – the largest free-spanning dome stadium in the world.
Marko Tulokas, SVP, Industrial Service & Equipment, Region APAC, Konecranes
Email: [email protected] or phone +358 40 745 8882
Further information for investors and analysts:
Kiira Fröberg, Vice President, Investor Relations, Konecranes
Email: [email protected] or phone: +358 20 427 2050
Media contact at Jebsen & Jessen Group
Anthea Ho, Manager, Corporate Communications
Email: [email protected]
Konecranes is a world-leading group of Lifting Businesses, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity enhancing lifting solutions as well as services for lifting equipment of all makes. In 2022, Group sales totaled EUR 3.4 billion. The Group has approximately 16,500 employees in around 50 countries. Konecranes shares are listed on the Nasdaq Helsinki (symbol: KCR). www.konecranes.com
MHE-Demag is part of the global lifting leader Konecranes. Established in 1972 and based in Singapore, MHE-Demag has 11 factories and more than 70 service locations throughout Southeast Asia. MHE-Demag is the name for material handling. We engineer, manufacture and maintain a comprehensive range of industrial cranes and hoists, warehousing equipment such as lift trucks and dock levellers, aerial work platforms, building maintenance units for safe working at heights, compact construction equipment, as well as automated car parking systems.
For more information, visit www.mhe-demag.com
About Jebsen & Jessen Group
We are an ASEAN-focused industrial conglomerate with a diverse network of businesses spanning manufacturing, engineering, and distribution activities.
The five core business units - Cable Technology, Ingredients, Life Sciences, Packaging and Technology - are present in eight countries and deliver through various locations across China, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Our nine manufacturing facilities are in Indonesia, Malaysia, Myanmar, Singapore and Vietnam. Our 2,550 people work as one to develop meaningful products and services for the 20,000 customers we serve.
For more information, visit www.jjsea.com
About Jebsen & Jessen Technology
We bring together application, service and technology driven activities. Across the region we provide equipment and complete turn-key solutions through four divisions: Industrial Services, Pumps, Scientific Equipment and Turf & Irrigation. Drawing on our regional network of industry focused resources; we bring relevant global brands to key markets.
For more information, visit www.technology.jjsea.com